Performance measurement practices

a survey of small and medium sized manufacturing enterprises

Sujatha Perera, Pamela Baker

Research output: Contribution to conferencePaper

32 Citations (Scopus)

Abstract

Small and medium sized enterprises (SMEs) constitute a significant part of business activities of most countries and their successful performance is likely to have a significant economic impact. A performance measurement system (PMS) is one means used by organisations to ensure effective and efficient performance. Researching PMS and related issues in the SME context has attracted limited attention resulting in the number of studies in this area being inadequate and sporadic. Using survey and interview data, this study examines performance measurement practices in SMEs. The study aims to provide insights into the aspects of performance measured, how the information is used and factors inhibiting its use. The results show that most businesses in the sample measure overall, employee and product performance. A high emphasis is placed on financial aspects of organisational performance. However, with increase in size, there is a tendency to make greater use of non-financial measures. The study also found that SMEs with non-owner managers make greater use of multiple performance measures than those with owner managers. No significant difference was found between these groups in measurement of employee performance and frequency of measurement of performance. Information generated from the PMS is used to facilitate planning, control, and decision making. Time and resource constraints are noted as the main factors that inhibit effective use of performance measurement systems.
Original languageEnglish
Publication statusPublished - 2006
Event29th Annual congress of the European Accounting Association - Dublin, Ireland
Duration: 22 Mar 200624 Mar 2006

Conference

Conference29th Annual congress of the European Accounting Association
CityDublin, Ireland
Period22/03/0624/03/06

Keywords

  • performance standards
  • employees, rating of

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